Securities and Exchange Board of India (SEBI)
Ref : SMD-I/3118
Dec .27, 1993
The Presidents/Executive Directors of
Kutch/ Uttar Pradesh/ Vadodara/OTC Exchange of India
Registration of Sub Brokers
Please refer to our letter dated September 9/16 1993 advising that the brokers and sub-brokers should execute an agreement as required under Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Rules and Regulations , 1992. You were advised to collect registration fees of Rs 1000/- from each sub-broker who has executed the agreement and whose application has already been recommended by the Exchange. The fees along with certain details as prescribed in the aforesaid letter were required to be sent to us so that we could issue the certificates of registration. We are still awaiting the same.
Your attention is drawn to Section 12 of SEBI Act which requires the sub-brokers to get registered with SEBI for doing business in securities. The stock brokers are not supposed to deal with those sub-brokers who are not registered with SEBI. Therefore you are requested to advise your member brokers to execute the agreement with their sub-brokers and collect the requisite fees to be forwarded to SEBI on an urgent basis. The copies of agreement should not be sent to us. In case you need any clarification in this matter, please contact the undersigned.